Lexology January 16, 2026
We frequently get calls from hospital systems, health care providers and investors regarding negotiating on-campus ground leases. They are certainly unique. Here are 10 business points to consider when negotiating on-campus ground leases.
- Premises – The land being leased can vary widely. We often see hospitals ground leasing only the footprint of the building. There are some instances, on larger campuses, where the hospital allows the developer to lease the land needed for the footprint of the building, plus the land needed for parking and access.
- Term – We typically see initial lease terms of 50 years. Lessees want enough term to recoup their investment and benefit from the useful life of the improvements. Most ground leases include multiple...
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